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every one singular, so have should be has; A & C eliminated
In B "each one of them " has redundant problem; one uses redundant
In E - "all of them" is plural whereas verb singular "faces"
best choice D
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every one singular, so have should be has; A & C eliminated
In B "each one of them " has redundant problem; one uses redundant
In E - "all of them" is plural whereas verb singular "faces"
best choice D but confusion about "they each face"
Hope this helps,
"they each" sure does sound unfamiliar to the ear but it in fact is the correct construction. When "each" is part of the "subject of a sentence", it is used with a "singular verb", except when it follows a "plural subject":
    They each do their share of the work.
    They each have been given an apple.

Edit: I believe you have modified your answer, so I hope you have this doubt cleared. I will anyway leave this post up for the larger community.
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A) every one of the bulge-bracket banks have lost money, and they each faces enormous challenges
SVA error "every one....have" & "they each faces"

B) every one of the bulge-bracket banks has lost money, and each one of them face enormous challenges
SVA error "each..face"

C) every one of the bulge-bracket banks have lost money, and they each face enormous challenges
"every one...have" SVA error

D) every one of the bulge-bracket banks has lost money, and they each face enormous challenges
correct


E) every one of the bulge-bracket banks has lost money, and all of them faces enormous challenge
"all of them faces" SVA error
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My answer is (D). It took me 35 seconds.

(A) "every one" (singular) does not agree with "have".
(B) "each one" (singular) does not agree with "face".
(C) "every one" (singular) does not agree with "have".
(E) "all of them" (plural) does not agree with "faces".
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